Friday, 2 January 2015

Indian FX/debt factors to watch - 02.01.2015

GLOBAL MARKETS ROUNDUP* The euro started the new year at 29-month lows in Asiaafter the head of the European Central Bank fanned expectationsit would take bolder steps on stimulus this month, underliningthe U.S. dollar's rate advantage.* U.S. crude futures hit $55.11 a barrel beforeeasing to around $54.25 a barrel on the first trading day of2015 in Asia, supported by a larger-than-expected fall in U.S.crude stocks, though China's lacklustre economic data cappedgains.

OVERNIGHT NEWS* India on Thursday raised factory gate duties on petrol anddiesel by 2 rupees ($0.03) a litre to fund infrastructureprojects in the current and next fiscal years.* India has scrapped its 65-year-old Planning Commission,which Prime Minister Narendra Modi has accused of stiflinggrowth with Soviet-style bureaucracy, replacing it on Thursdaywith a body he said would do more to involve the regions.

LIQUIDITY* The Reserve Bank of India said on Thursday it accepted all55 bids for 216.62 billion rupees ($3.42 billion) at its one-dayrepo auction, through which it injects liquidity into thebanking system.* Indian banks' refinancing with RBI rises to 98.17 billionrupees.* Indian banks' cash balances with RBI rise to 3.46 trillionrupees.